We sincerely appreciate your support and patronage as usual.

In fiscal year 2024, the Japanese economy continued to recover gradually, despite some lingering weakness in personal consumption, as improvements in the employment and income environment and signs of a recovery in capital investment were observed. However, the outlook for the economy remains uncertain due to continued price increases, policy developments in the United States, and fluctuations in financial and capital markets. In the construction market, while the impact of rising material and equipment prices and labor costs remains a concern, public investment has remained steady. Looking ahead, the implementation of the Medium-Term Plan for the First Phase of the National Resilience Enhancement Program and other disaster prevention and mitigation measures, as well as infrastructure development related to national defense and security, are expected to support the continued growth of the market in the future.

Under these circumstances, we have been promoting various business strategies: “Maximize our organizational capabilities through improving of cross-individual collaboration,” “Aggressively challenge new business models, including new projects,” and “Establish a cycle that sustainably improves corporate value through employees with high levels of well-being” based on the Medium-term Management Plan (FY2023-FY2025).

As for the consolidated performances during the fiscal year 2024, we recorded net sales of ¥330,472 million (increased by 16.4% year on year), operating profit of ¥20,621 million (increased by 19.7% year on year), ordinary profit of ¥20,073 million (increased by 20.7% year on year), and profit attributable to owners of parent of ¥14,908 million (increased by 41.8% year on year).

Under the Medium-term Management Plan (FY2023-FY2025), which has basic policies aimed at integrating business strategy and human resources strategy to realize the Long-Term Vision 〈TOA2030〉, we are aiming to achieve business goals, with each operating unit pursuing key measures described below. By steadily going ahead with the Medium-term Management Plan, we will establish a cycle that sustainably improves corporate value through building an organization and developing human resources to promote business expansion. Furthermore, we will maximize our organizational capabilities through improving cross-divisional collaboration and aggressively challenge new business models including new projects to achieve our long-term vision “Build a prosperous society and connect all the people over the world for the better future” and fulfill social responsibilities. By steadily implementing these elements of the plan, we will pursue sustainable growth and the enhancement of our medium- to long-term corporate values.

Furthermore, as the current fiscal year is the final year of the “Medium-Term Management Plan (FY2023-FY2025),” we plan to formulate and announce a new Medium-term Management Plan during the current fiscal year.

In fiscal year 2023, it was discovered that multiple employees of our consolidated subsidiary, Shinko Kensetsu Co., Ltd., colluded with a subcontractor of the company to pay inflated or fictitious construction costs and then diverted a portion of those funds to themselves. We have sincerely accepted the findings of the internal investigation committee and its recommendations for preventing recurrence and have developed and announced measures to prevent recurrence on December 21, 2023. Both our company and Shinko Kensetsu Co., Ltd. are implementing these measures to prevent recurrence, and we are also strengthening our monitoring of governance at other consolidated subsidiaries.

Going forward, we will further strengthen our internal control systems and compliance framework to ensure that such misconduct does not recur, and all executives and employees of our group will work together to implement specific measures to prevent recurrence.

We sincerely request your continued understanding and support.

Takeshi Hayakawa
President and Representative Director
TOA CORPORATION
June 2025